The New York Yankees and closer Aroldis Chapman have agreed to a contract extension that will keep the left-handed fireballer in pinstripes through the 2022 season. No free agency.
Chapman and the Yankees have agreed to add one year and $18 million on top of the remaining two years and $30 million that was left on the contract. The total value of the rest of his contract is now three years and $48 million, according to my math. That leaves the average annual value (salary/luxury tax hit) at $16 million per year for the remainder of the deal.
This feels like a good compromise for both sides. Chapman gets some extra security by adding another guaranteed year and $18M to his deal, and the Yankees, if my math and understanding of the luxury tax serve me correctly, technically get a little bit of luxury tax relief. I assume he technically “opted out” and signed a “new” three-year deal. I could be wrong, but if that’s the way it went down, officially, then his signing bonus from the previous contract is redistributed to the previous three years of the contract and the AAV is restricted to just this figure. Cool!
I’m glad this got resolved quickly. Chapman is still quite good, so letting him walk would have stunk. I think if he ultimately opted out and wanted to test free agency then I would have been in favor of letting him walk. He’s 31 now, has shown some signs of decline (he doesn’t throw 104 mph anymore), and I’d ultimately rather let him walk with some years of productivity ahead of him than sign him long-term and deal with (expensive) years of decline. Luckily, this seems to be the best of both worlds. I think he for sure had three years of dominance left in him.
This feels like a good thing for the Yankees. That’s my gut reaction. If I’m correct about the salary cap thing, then all the better!